Dogecoin [DOGE] slipped to the seventh position following the market-wide tumble on 21st June. The combined valuation of the cryptocurrency market fell to $1.34 trillion while the meme-coin weekly losses extended to 40%. This was in response to China’s PBoC ordering domestic financial institutions to promptly curtail payment channels for crypto trading.
The volatility in the market has increased following the latest abrupt drawdown. However, retail traders do not seem to be buying the dip this time.
Dogecoin [DOGE] depreciated by nearly 22% over the past day which drove its price to $0.207, a low not seen since mid-April. At the time of writing, the digital asset held a market cap of $27.15 billion while registering a trading volume of $7.47 billion.
Dogecoin [DOGE] Daily Price Chart:
TWJ had earlier predicted the price go down as the trend paused after the formation of a continuation pattern on the daily Dogecoin [DOGE] chart. The low volume in the market has strongly impeded any scope of growth in the market.
While the 50 DMA [Pink] continued to resist the DOGE candles, the 100 DMA [Blue] also moved over them on Monday as the price fell after weeks of sideways price movement. The upsloping 200 DMA [Yellow] neared the candlestick arrangement.
The red closing bars of Awesome Oscillator depicted an increasing bearish momentum. The buying demand has taken a massive hit following the dump and hence a phase of bearishness as indicated by the MACD. The Relative Strength Index [RSI] also slid to the oversold conditions suggesting a sentiment of intense sell pressure in the coin market.
As Dogecoin breached critical support levels, no bullish signals emerged to demonstrate the formation of a bottom. Hence, there could be more downside potential. The key support levels for the meme-coin were found to be at $0.15, and $0.52. The resistance levels, on the other hand, stood untested at $0.39, $0.55 and $0.69 respectively.